Friday tips round-up: Prudential, National Grid, SABMiller

15th May 2009 06:39

Life insurance as a sector may have some problems, but the Independent says that that Prudential is leaving the others in its wake. The fact that sales are down in some key markets is a worry, and while it is not sure the shares will meet broker targets of 850p any time soon, they are undervalued. Buy.There is a risk National Grid shares get left behind in a shift of cash to more cyclical stocks. But its 95% exposure to regulated assets and the falling cost of its index-linked debt mean that there are worse places to remain among utilities. At 584½p, or 12 times earnings, and yielding 6.1%, hold on says the Times.The company does have debt to service. In fact, debt has been one of the major challenges facing the group. However, its safe and reliable earnings allowed it to raise £5bn in debt last year and it has agreed financing on 75pc of the debt it will need to refinance this year. But in defensive times such as these, shares such as National Grid are a good buy adds the Telegraph.Brewer SABMiller is busy cutting capital expenditure by 30% and attacking costs, shedding 2,000 jobs in Colombia, for example. The benefits should flow through in the second half of this year, boosting earnings, while its modest debt gives it the scope to seek bolt-on acquisitions in China, South America and Africa. At £12.30, up 11p, or 13 times earnings, now is not the time to lose faith suggests the Times.Recent gains in the SABMiller share price mean the yield has fallen to 3.3%. The stance is therefore a hold from buy says the Telegraph.When the recovery starts, nightclub owner Luminar, at 133p, up 6¼p, or less than seven times forward earnings, will sober up faster than the competition. Hold says the Times.Business publisher Euromoney has cut costs early and as such it is well placed for any recovery. It has also put more emphasis on subscriptions and was able to report that subscription revenues were up 35% in the period, and now make up 47% of income.The dividend is a disappointment, but Euromoney's share price is proving resilient in these markets. Hold says the Independent.BTG shares are up by nearly a third in the past year. Yesterday the group reported full-year revenues were also up, by 13.1% to £84.8m. Brokers have a target of 164p. Even if that is not a great leap from today's levels, investors should buy a growing stock. Buy says the Independent.Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.